PRAGUE WATER SUPPLY AND SEWERAGE COMPANY IN 2011 1 Table of Contents 3 Background 4 Bodies of the Company as at 31 December 2011 5 Facts and Figures 6 OUR SERVICES Water Production, Water Management, Water Losses, Water Meters, Accidents in the Water Supply Network Wastewater Draining and Treatment, Sewerage Network Surveys, Accidents in the Sewerage Network Water Quality, Drinking Water, Wastewater Customers Call Centre, Customer Care Centre, Other Services, Information Brochures and Magazines 17 CORPORATE SOCIAL RESPONSIBILITY Employees, Employee Training, Occupational Health and Safety Environmental Education, Corporate Volunteering Environmental Protection, Waste Management, Quality of Wastewater Released into the River Vltava, Carbon Footprint, Biodiversity Protection 24 INNOVATION IDEO, Co-operation with ČEZ, Water Treatment Plants and Refurbishment, Refurbishment of PS and BWWTP, Improvements at the CWWTP Metrology and Remote Monitoring of the Water Supply Network, New Water Consumption Metering Technologies, Surveys and Metering in the Sewerage Network Helios Green Improves Performance, New IT 28 Institute of Environmental Services (“IES”) 2 Background Name: Pražské vodovody a kanalizace, a.s. Date of inception: 1 April 1998 Emergence: Pražské vodovody a kanalizace, a public company limited by shares, is the legal successor of the state-owned enterprises Pražské vodárny, s.p. and Pražská kanalizace a vodní toky, s.p., to the extent specified in the privatisation proposal. Legal form: Public company limited by shares Company No. 25656635 Share capital: CZK 483,288,000 Shareholder: VEOLIA VODA S.A. 100 % Registered office: Praha 1, Pařížská 11 The company does not have any organisational units outside the Czech Republic. 3 Bodies of the Company as at 31 December 2011 Board of Directors Mr Philippe Guitard, Chairman Mr Rostislav Čáp, Vice-Chairman Mr Etienne Petit Mrs Eva Kučerová Mr Milan Kuchař Mr Petr Mrkos Mr Martin Bernard Supervisory Board Mrs Květoslava Kořínková, Chairperson Mr Ivo Sušický, Vice-Chairman Mrs Marcela Dvořáková Mr Josef Šverma Mrs Marie Abrahámová Mrs Alena Březinová Management Board Mr Milan Kuchař, Chief Executive Officer Mr Petr Mrkos, Deputy CEO, Chief Financial and Sales Officer Mr Petr Slezák, Deputy CEO, Chief Personnel Officer Mr Petr Kocourek, Chief Operating Officer Mrs Radka Hušková, Chief Technical Officer Mrs Marcela Dvořáková, Chief Communication and Marketing Officer 4 Facts and Figures Turnover: CZK 5.07 billion Profit: CZK 366,370,000 Number of people supplied: 1.26 million and 200,000 residents of the Central Bohemian Region and the Vysočina Region Number of employees: 1,040 Water production: a total of 119,050,000 m3 of water, of which 118,034,000 m3 of drinking water Quantity of treated wastewater: a total of 129,356,000 m3 Length of the operated water supply network, including supply pipes: 4,290 km Length of the operated sewerage network, including drain pipes: 4,513 km Number of contract customers: 86,510 5 OUR SERVICES PVK operates the water management infrastructure of the City of Prague. It is in charge of producing and distributing drinking water and draining and treating wastewater. It focuses on customer services helping to improve and simplify contacts with customers. PVK observes Customer Service Commitments, which are on a par with the European standards of the parent Veolia Eau Group. In addition to its core business, PVK also offers services to external customers such as detection of hidden faults and failures, surveys and measurements in the sewerage network, laboratory analyses, erection of service pipes, and rodent control. PVK holds a gold certificate for its integrated management system (ISO 9001:2009, ISO 14001:2005, and OHSAS 18001:2008). WATER PRODUCTION The Želivka, Káraný and Podolí water treatment plants produce water for 1.26 million Prague residents and another approximately 200,000 residents of the Central Bohemian Region and the Vysočina Region. The Podolí water treatment plant in Prague was only operated in August 2011 in connection with the outage of a penstock, on which cracks in the concrete walling had to be repaired. Otherwise, the Podolí water treatment plant is only a back-up capacity for cases of accidents at the Želivka and Káraný water treatment plants. Water production in 2011 (m3) m3 Želivka water treatment plant 87,021,679 Káraný water treatment plant 30,551,270 Podolí water treatment plant 460,783 Total drinking water 118,033,732 Industrial water main 1,016,454 Total production 119,050,186 A total of 119,050,000 m3 of water was produced in 2011. Of this amount, 118,034,000 m3 was drinking water (99.1%) and 1,016,000 m3 was non-potable water (0.9%). Share of drinking water at water treatment plants in 2011 6 Total water production between 2007 and 2011, in thousands m3 Water business between 2007 and 2011 (in thousands m3), drinking water + the industrial water main 2007 2008 2009 2010 2011 Total production 129,136 126,515 124,045 122,566 119,050 Water supplied to other 15,716 16,525 16,327 15,827 16,135 operators Water received from other 0 0 0 0 0 operators Water intended for supply 113,420 109,990 107,719 106,738 102,915 Total water billed in 88,401 85,964 83,845 82,517 80,257 Prague Unbilled water 25,019 24,026 23,873 24,221 22,659 Percentage of loss of 21.40 20.84 20.99 21.62 21.13 water intended for supply In 2011, water production declined by 3,516,000 m3, i.e. 2.9%. This major drop in water production was attributable to loss reductions and lower water consumption in summer and autumn. Specific water consumption of households amounted to 112 litres/person/day. Water losses (%) In 2011, water losses were reduced from 21.62% to 21.13%, which is a favourable result given the significant drop in water production. Reductions in water losses are also supported by preventive checks of the water supply network. In 2011, 2,817 km of the water supply network was subjected to checks, revealing 337 hidden water leaks. It will be very difficult to cut the percentage of losses even more without carrying out replacements in the water supply network at the recommended rate. 7 Length of water supply network 3,518 km Length of supply pipes 772 km Number of supply pipes 109,043 Number of water meters 110,943 Number of reservoirs 73 Volume of reservoirs 947,714 m3 Number of pumping stations 47 Water Meters Water meters intended for billing, of which there are 110,943 in the water supply network, measure drinking water consumption in Prague. Remote readings of water meters via radio modules take place for 1,276 meters. Primarily because of the expiry of the validity of verification, 17,422 water meters were replace in 2011. In 2011, the technical support and metrology department commissioned the repair and verification of 5,882 water meters and 681 official tests of water meters from an external supplier. On 23 September 2011, the new Metrology Rules came into effect; subsequently, metrology recording of meters was launched in the new Technical Information System (TIS). Accidents in the Water Supply Network A total of 4,309 accidents, i.e. 349 accidents (8.1%) more than in 2010, were tackled in the water supply network in 2011. The average supply interruption time per failure was cut to 8 hours and 51 minutes, down by 26 minutes compared with 2010. The company repaired 1,400 failures on water mains and 675 failures on supply pipes in 2011. The number of large-scale accidents (46) and medium-scale accidents (231) decreased by 2.6%. The most frequent cause of the accidents was corrosion of materials (66%) and land movement (27%). Number of defects in the water supply network repaired between 2007 and 2011 8 SEWAGE COLLECTION AND TREATMENT Total length of sewerage network 3,572 km Length of sewage drain pipes 941 km Number of sewage drain pipes 115,696 Number of pumping stations operated 306 Number of sewage treatment facilities 21 branch WWTP + CWWTP In 2011, 1.24 million people were connected to the sewerage network in Prague. Its overall length, including sewage drain pipes, was 4,513 km. The sewerage network in Prague was built as an integrated system. The main sewers in the system pass wastewater to the Central Waste Water Treatment Plant (CWWTP). The outskirts of Prague have separate sewerage networks that do not mix sewage and rainwater, but divert them into separate systems. In 2011, PVK operated 21 branch waste water treatment plants in addition to the CWWTP: in Běchovice, Březiněves, Horní Počernice - Čertousy, Dolní Chabry, Holyně, Kbely, Koloděje, Kolovraty, Klánovice, Královice, Lochkov, Miškovice, Nebušice, Nedvězí, Sobín, Svépravice, Uhříněves - Dubeč, Újezd nad Lesy, Újezd u Průhonic, Vinoř, and Zbraslav. Quantity of wastewater treated in 2011 (m3) m3 CWWTP 119,568,480 BWWTP 9,787,912 TOTAL 129,356,392 Share in wastewater treatment in 2011 In 2011, the CWWTP and BWWTP treated a total of 129,356,000 m3 of wastewater, which was 4.7% less than in 2010. In Prague, the wastewater quantity has varied in recent years, depending on the weather and other external factors prevailing in each particular year. 9 Quantity of wastewater treated at CWWTP and BWWTP between 2007 and 2011 (thousands m3) Sewerage Network Surveys In 2011, preventive surveys of the sewerage network covered 146 km of sewers, and included the inspection of 2,028 access shafts and other installations in the sewerage network. The checks helped to detect 21 defects. Part of the preventive surveys was checks of the condition of sewers before the end of the warranty period, when 20 km of sewers were examined. Of the 34 structures inspected, 28 were found to be defective.